BIM: The Promise of an Integrated Approach to Project DeliveryAWC|WEST
A presentation about (1) The technological and business practice influences that are impacting today’s architectural practice;
(2) The difference between Little-BIM and Big-BIM; (3) The relationship of Integrated Project Delivery in Big-BIM; (4) A practical discussion of resources to implement BIM; and (5) The practical uses for the BIM model
BIM Lecture Note (5/6)
Objectives
* The challenges of Building Construction Project
* To understand what is IPD & LEAN Construction
* To understand Asset Lifecycle Management (iBIM)
*How to apply ALM & BIM to enable LEAN Construction
Question
* How iBIM can be applied to enable IPD & LEAN Construction?
When BIM tools and processes are combined with the desire to collaborate, the building design and construction project results are superior to projects using "traditional" methods. This presentation begins with a series of definitions and examples of BIM and includes a wide variety of projects where BIM saved the day for the team.
BIM: The Promise of an Integrated Approach to Project DeliveryAWC|WEST
A presentation about (1) The technological and business practice influences that are impacting today’s architectural practice;
(2) The difference between Little-BIM and Big-BIM; (3) The relationship of Integrated Project Delivery in Big-BIM; (4) A practical discussion of resources to implement BIM; and (5) The practical uses for the BIM model
BIM Lecture Note (5/6)
Objectives
* The challenges of Building Construction Project
* To understand what is IPD & LEAN Construction
* To understand Asset Lifecycle Management (iBIM)
*How to apply ALM & BIM to enable LEAN Construction
Question
* How iBIM can be applied to enable IPD & LEAN Construction?
When BIM tools and processes are combined with the desire to collaborate, the building design and construction project results are superior to projects using "traditional" methods. This presentation begins with a series of definitions and examples of BIM and includes a wide variety of projects where BIM saved the day for the team.
The presentation covers following areas:
- Typical Problems in Construction Industry
- What is BIM?
-BIM Process
- Influence of BIM on Industry Problems
- BIM Application
- BIM Advantages
- BIM Workflow
- BIM & Project Management
- BIM & Design Team Members
- BIM around the Globe
- Construction Industry with BIM
All work presented in the presentation is carried out by graduates of NUST, Islambad including Abdul Mughees Khan, Syed Kashif Ali Shah, Sharjeel Ahmad Tariq, Malik Awais Ahmad and Hamza Khan Shinwari.
Special credit of the work goes to Engr Tahir Shamshad, Vice President NESPAK and Engr Zia Ud Din, Asst Professor NUST under guidance and mentor ship the whole work was performed.
For more details feel free to contact: amugheeskhan@gmail.com
Building Information Modeling : What, Why, HowNancy Cheng
What is BIM? Why do we need it? How do we do it? A collection of graphic images explains the advantages of using a coordinated data-rich 3D model for design communication and collaboration.
iBIM and Knowledge Management - the case for more intuitive Building Information Modelling - Presentation by Paul Coates, delivered at Be2camp NW, in Manchester, UK, on 15 June 2010.
ACE is a mentoring program designed to bring together Chicago's best architecture, engineering, and construction companies to mentor high school teens. The students learn about the building process through weekly activities organized by the mentors.
ODI Futures Flash Talk: Building Research Establishment and Open DataStuart Chalmers
This talk was given by Stuart Chalmers of BRE at Show me the future of open data and the built environment, 19 May, 2014.
Audio from this talk can be found here - https://soundcloud.com/theodi/odi-futures-building-research-establishment-and-open-data-by-stuart-chalmers
ODI Futures - http://theodi.org/research-afternoons/show-me-the-future-of-the-built-environment-and-open-data
The presentation covers following areas:
- Typical Problems in Construction Industry
- What is BIM?
-BIM Process
- Influence of BIM on Industry Problems
- BIM Application
- BIM Advantages
- BIM Workflow
- BIM & Project Management
- BIM & Design Team Members
- BIM around the Globe
- Construction Industry with BIM
All work presented in the presentation is carried out by graduates of NUST, Islambad including Abdul Mughees Khan, Syed Kashif Ali Shah, Sharjeel Ahmad Tariq, Malik Awais Ahmad and Hamza Khan Shinwari.
Special credit of the work goes to Engr Tahir Shamshad, Vice President NESPAK and Engr Zia Ud Din, Asst Professor NUST under guidance and mentor ship the whole work was performed.
For more details feel free to contact: amugheeskhan@gmail.com
Building Information Modeling : What, Why, HowNancy Cheng
What is BIM? Why do we need it? How do we do it? A collection of graphic images explains the advantages of using a coordinated data-rich 3D model for design communication and collaboration.
iBIM and Knowledge Management - the case for more intuitive Building Information Modelling - Presentation by Paul Coates, delivered at Be2camp NW, in Manchester, UK, on 15 June 2010.
ACE is a mentoring program designed to bring together Chicago's best architecture, engineering, and construction companies to mentor high school teens. The students learn about the building process through weekly activities organized by the mentors.
ODI Futures Flash Talk: Building Research Establishment and Open DataStuart Chalmers
This talk was given by Stuart Chalmers of BRE at Show me the future of open data and the built environment, 19 May, 2014.
Audio from this talk can be found here - https://soundcloud.com/theodi/odi-futures-building-research-establishment-and-open-data-by-stuart-chalmers
ODI Futures - http://theodi.org/research-afternoons/show-me-the-future-of-the-built-environment-and-open-data
EBEC2015 Helsinki. Concept of Big Room, Granlund OyTero Järvinen
Assignment to EBEC Helsinki 2015, Aalto University.
"A Collaborative Workspace for Multiparty Construction Design Team, eq. ”Big Room” concept.
Main sponsor: Granlund Oy
A BIM-enabled collaborative platform in practice #COMIT2016Comit Projects Ltd
Presentation by Esra Kurul & Tim Carey (Willmott Dixon Construction, Scape & Oxford Brookes University) at COMIT 2016: Digitally Building Britain, September 2016
More information: http://www.comit.org.uk/liveblog
3rd Qatar BIM User Day - Best Practice in Preparing an Organization for BIMBIM User Day
Speaker: Waleed Hashem
- Shifting to BIM
- BIM Company challenges
About the Qatar BIM User Day:
Qatar University, HOCHTIEF ViCon and Teesside University proudly take the initiative to facilitate modern and innovative methods in the Gulf construction industry. The focus is Building Information Modeling (BIM), and our aim is to establish a knowledge platform with government, research and industry experts. The User Day aims to help people to share knowledge, discuss new technologies, and identify new potentials for BIM.
More information: www.bimuserday.com
Follow BUD on Twitter @bimuserday
Presentation of coBuilder solutions - and our workØystein Iversen
Presentasjon på buildingSMART medlemsmøte 17.09.2015
ProductXchange, DoPcreator, goBIM, Product Data Tamplates, COBie, bSDD, IFC
• Solve REACH, CPR and other national and market requirements while implementing BIM.
• Using Open BIM
• Create Product Data Templates (PDT) based on CEN, CENELEC, IFC, COBie, national standards etc.
• Translations of terms into EU languages.
• Product data based on buildingSMART Data Dictionary
• Our work is supported by European associations - FIEC, UNIEP, GCI-UICP
Intro to buildingsmart and COBie - Nick Tune at Ecobuild 2015The NBS
Nick Tune joined us at Ecobuild 2015, and kicked off our selection of BIM seminars with Introduction to Buildingsmart and COBie - you can now see the slides here!
Topic: Streamlining BIM Workflow by Standardising Design Process
Speaker: Desmond Leung
Hong Kong Revit User Group
HKIBIM-CIC BIM Academic Papers Presentation and Showcase 2015
Date: 12-Dec-2015 (Sat)
Time: 1:30 p.m. to 4:30 p.m.
Venue: LT-02, IVE (Morrison Hill), 6 Oi Kwan Road. Wan Chai, Hong Kong
Organizer: The Hong Kong Institute of Building Information Modelling (HKIBIM)
Sponsor: Construction Industry Council (CIC)
Co-organizer:
Department of Land Surveying and Geo-Informatics, The Hong Kong Polytechnic University (PolyU)
Department of Civil and Environmental Engineering, The Hong Kong University of Science and Technology (HKUST)
Hong Kong Institute of Vocational Education (IVE)
Hong Kong Revit User Group (HKRUG)
Event Secretary:
Engineering Discipline In-service Training Office, Vocational Training Council (EDiTO)
“BIM-onomics: how will BIM change the business of design?” We all know that BIM takes design to the next level, but how does it change your business? We will look at how by embracing BIM not just as a design tool, but as a completely new way of working will change the way we operate as a business. In this presentation, we will look at potential business challenges, analyse project data, and suggest strategies to prepare your organisation for changes to your underlying business model in the face of a new BIM-driven industry. This presentation will use business examples and discuss the challenges from the perspective of different practices and project scales.
Lean Construction – Construction Process Integration framework, London Novemb...Ionel GRECESCU
Historically, Product Lifecycle Management vendors have supported AEC solutions while Enterprise Resource Planning vendors have been focusing on the EPC side of the AEC/EPC ecosystem.
It is time to adopt a holistic approach to Construction Lifecycle and both, PLM and ERP vendors, must provide new technologies and solutions to promote efficient collaboration between Construction disciplines and streamline Business Practices that result in increased profitability and significant savings for their customers.
Construction Lifecycle Management promotes new ways of thinking and doing business, aiming to achieve Lean by delivering an innovative Construction Process Integration framework to manage holistically all the phases of the Lifecycle of a Capital Asset: design, build, operate and retirement.
Sustainability In Government - Bim Webinar4 All of Us
CROSS-WHITEHALL SUSTAINABILITY PRACTITIONERS FORUM
ADDRESSING THE BENEFITS OF BIM - SPONSORED BY FORGE TRACK LTD
We kick-started the series with a webinar for the Cross-Whitehall Sustainability Practitioners Forum. These webinars will provide the practitioners with the latest information, knowledge and policy announcements on a range of sustainability issues and was decided to launch this series by addressing BIM. BIM is a new requirement for government which Sustainability Practitioners will need to be aware of and one that will help Departments in the achievement of the mainstreaming commitments outlined below.
The Green Government Commitments require transparency and, in addition to the above requirements, must address the following areas: climate change adaptation; biodiversity and natural environment; procurement of food and catering services; sustainable construction; and staff wellbeing and quality of life. The Government Construction Strategy published May 2011, set out the framework for a range of workstreams, all of which have the ultimate aim of reducing the cost of government construction projects by 15-20 per cent by the end of the current Parliament.
The BIM task group are supporting and helping deliver the objectives of this strategy and the requirement to strengthen the public sector's capability in BIM implementation with the aim that all central government departments will be adopting, as a minimum, collaborative level 2 BIM 2016.
This webinar examined how BIM can support central government departments in their achievement of collaborative level 2 Bim by 2016 and highlight the great work already taking place within this field.
Change Management For Building Information Modelling (BIM)Ir. Abdul Aziz Abas
Change Management for Building Information Modelling (BIM) addressing the challenges, advantages, implementation process strictly used for educational purposes.
From 3D to 6D Managing the Information Labyrinth of BIM.pdfVincentPoon15
As the Building Information Modeling (BIM) concept continually matures and gains wider recognition as a crucial collaborative process within the building design and construction industry, the demand for BIM services from construction managers, architects, and engineering firms is on the rise. In response to this growing need, AEC (Architecture, Engineering, and Construction) firms are proactively investing in BIM technologies to enhance their capabilities across various project phases, including bidding, preconstruction, construction, and post-construction stages.
This presentation equips participants with essential skills and best practices for effectively managing BIM data throughout the entire project lifecycle. Through a series of scenario-based presentations and real-world case studies, attendees gain valuable insights into the seamless flow of BIM information from the initial design phases to ongoing building maintenance. Furthermore, this course emphasizes the synergistic potential of integrating specification writing seamlessly into the BIM workflow.
By the conclusion of this course, participants will have acquired a thorough comprehension of how BIM data evolves as it progresses through the design, construction management, and, ultimately, building operation and maintenance phases.
Key learning objectives
List the strengths, weaknesses, opportunities, and threats of BIM
implementation in the building design and construction industry
1. Identify current uses of BIM technologies in the architectural, engineering,
construction, and building management industry construction, and building management industry
2. Describe best practices for implementing BIM in an integrated work culture or
environment
3. Define the importance of integrating specification writing with BIM workflow
6. 1
Low Margin, or target
Waste
A New Value Proposition Build better before built
7. LEAN Construction
Definition of waste:
1. Over Production
2. Defects (Rework)
3. Transportation
4. Waiting
5. Inventory
6. Motion
7. Processing
8. Lean Construction
Conventional CM/PM Approach
• Value-engineering
• TQM/QFD
• Constructability Reviews
• IT/CAD/PMIS
“Lean” seeks to restructure the projects operating system to focus on what adds
value and to smooth out the workflow
Lean Tools
• “Plan Do Check Adjust” (PDCA) process
• A3 reports
• “Value Stream Mapping”
• BIM and Real Time Estimating
• “Target Value Design”
• “Last Planner System” / Commitment-Based Planning
9. Making The Change – PPI’s
‘Reducing Cost Through Improved Management’
Improved project management
drives down cost here
Drives up value here
10. Integrated Project Delivery – CMAA 2011 Organisation,
Operating Systems & Commercial Terms
Why IPD? What are the major
problems for which IPD is
proposed as the solution?
Stated briefly, construction projects frequently
suffer from adversarial relationships, low
rates of productivity, high rates in inefficiency
and rework, frequent disputes, and lack of
innovation, resulting in too many projects that
cost too much and/or take too long to build.
Also, projects continue to injure or kill too
many workers, and owners are often
disappointed with the quality of the end
product. IPD, in all its varieties, is structured
to address these basic problems.
11. Project Organisation
Issue
− Traditional projects involve ‘siloed’ structures with fairly
rigid hierarchies
Solution
− Integrated Teams
• Owners / designers / constructors
develop project
• Co-location
• Integrated software – BIM, PMIS
− Integrated Governance
• Core group / project management team
• Executive Council – dispute resolution
• High performing team culture
12. Australia – Drivers for Innovative Contract Models
LITIGATION
- In the 1990s partnering and alliancing grew out of
an industry beset by adversarial conduct and
marginal projects.
TEAM INTEGRATION
- In the mid to late 2000s – we saw the pinnacle of
owner-contractor collaboration through
“conventional” Alliances and ECI’s.
BUYERS MARKET
- Recent push-back (particularly Treasury)
concerned about demonstrating VFM & contractor
“capture” heralded a return towards less
integrated, possibly more adversarial environment
- Dominance of dual ECI’s and Collaborative
Contracts
WHAT’S NEXT
- Emerging innovative practices (eg. Lean, BIM,
system thinking, etc.) more than ever require a
culture of sharing and interdependence.
- Integrated Project Delivery
13. Australian Alliance Structures
– The Fundamentals in a Slide
1. Integrated owner / team structure –
no barriers, full accountability
2. Commercial Framework
‘Direct Cost’ paid - no risk
Corporate Overhead and Profit at Risk
Painshare/Gainshare & Key Result Areas
No dispute / no sue new Professional Indemnity
3. ‘Best for Project’ (not for participant)
decision making
4. Integrated team derives Target Cost
and scope – with independent check
5. Quality based selection process, dual
Target Cost model
14. Concurrent Engineering:
Towards an integrated digital solution
The principle of Integrated Concurrent Engineering
(ICE) to collocate a multidisciplinary team of domain
experts and to use fast technical and social
integration to reduce the time required to answer
each question, or latency.
Stanford Uni (CIFE)
16. What is BIM?
Definition:
bIM = Building Information Modelling (as a process)
Building Information Model (as a noun)
bIM is the sharing and leveraging of
structured information over the
building lifecycle
Lesser known terms…
Project Information Management
Digital Engineering
Virtual Design and Construction
Building Information Management
Asset (Lifecycle) Information Management
Business Information Management
Better Information Management
17.
18. What is BIM?
− Competitive tender price
− Lower preliminaries
− Lower project financing costs
− Reduced waste and cost
− Improved risk management
− Greater transparency of project
− Improved design coordination
− Better-informed decisions
− Supply chain integration
− Better construction planning
− Greater use of prefabrication
− Better site utilisation
− Safer job sites
− Validation of design by end users
− Earlier commissioning
− OPEX cost reductions through:
• Better preventative
maintenance planning
• Optimised energy use
• Better space management
− Improved communication with
OPEX stakeholders
− Better equipment tracking
− Improved security
− Better disaster planning and
emergency response
DELIVERY OPERATIONS/MAINTENANCE
19. The BIM Trojan Horse
Cool 3D
BIM in it’s various
guises is becoming
a metaphor for
industry change –
it is helping set a
compelling vision
of
what a digitised
sector would look
like
using computer
readable data
20. • Dynamic
• Disruptive by design
• Rapid
Innovative early adopters create disruptive methods
Laggard
Incumbents
Drop Off
Tipping
Point
Main-stream
Take-up
Early adopters embrace new models
Advanced Incumbents
Adopt
Digitized Construction
The new normalBIM is not just about
creating a
better mouse trap
Transformative
23. Virtual Asset Lifecycle Modelling:
Allows the virtual production, analysis, evaluation and optimal
development of an asset in a digital environment that mimics the
understanding and behaviour of the solution to the realization of that
solution in reality.
Digital
Briefing
& Digital
Procurement
Optimised
Operation
Nestle: Build Better Before Built
24. Lean Principles and BIM
“Interaction of Lean and Building Information Modelling in Construction” by Sacks, Koskella,
Dave and Owen, Journal of Construction Engineering Management, 136, 968 (2010)
The paper itemises some of the technical
capabilities that BIM applications possess but
which are not provided, or are not provided well,
by conventional CAD systems. These include:
− Realistic visualization of architectural
proposals
− Rapid generation of design alternatives
− Predictive analysis of building performance
− Simulation of construction processes
− Maintenance of project information integrity
− Automated generation of drawings and other
documents
− Collaboration in design and construction
− Online/electronic object-based
communication
− Direct data transfer to computerised
component fabrication
− Optimised “As built” model for asset
operation and maintenance
25. Lean Principles and BIM
The authors point out:
“Lean construction and BIM are not
dependent upon one another (i.e. lean
construction practices can be adopted
without BIM, and BIM can be adopted
without lean construction). This is
illustrated by the numerous cases of
separate adoption of each in design and
construction companies within the past
decade. However, (it is suggested) that the
full potential for improvement of
construction projects can only be
achieved when their adoption is
integrated.”
It is undoubtedly the case that an understanding
of Lean insights and the adoption of appropriate
Lean principles will enhance an organisation’s
BIM implementation processes, and, equally,
that an understanding of the power of BIM will
help individuals and organisations to implement
their Lean strategies.
31. • First Party Professional Indemnity (PI)
- ‘No blame’ events based cover (Aon, Swiss Re /
Vero original lead)
- Now 6 underwriters providing this cover for most
major Alliances (300 in Australia) (Currently
cheaper than traditional PI)
• Contract Works Insurance
- LEG 3 extension (allows rectification to what it
should have been)
• Public Liability Insurance
- Design write back (design impacts covered)
32. USA IPD Drivers
Waste and Lack of Productivity
- 2004 Construction Industry Institute study 57% of time, effort, material
investment does not add value (26% in manufacturing)
Technological Evolution
- 2008 ‘Tipping Point’ – Building Information Modelling “BIM”
Owner Demand for Value
- 2004 CURT (Construction Users Round Table)
The difficulties experienced on typical projects as “artifacts of a
construction process fraught by lack of cooperation and poor information
integration”
33. USA - Contracts
Integrated Project Delivery (IPD)
Level 1 - Modified CM at risk and/or
design-build
Level 2 – IPD Non Multi-Party Contract
Level 3 – IPD Multi Party Contract
Level 4 – IPD: Single Purpose Entity
BIM Addenda to IPD contracts
ConsensusDOCS 301 BIM Addendum
34. Integrated Project Delivery
4 levels of Contracts
Level 1 - Modified CM at risk and/or
design-build
Consensus Docs 500. Agreement and General Conditions
between Owner and Construction Manager
Level 2 – IPD Non Multi-Party
Contract
AIA A195-2008 Standard form of Agreement between
Owner and Contractor for Integrated Project Delivery
Level 3 – IPD Multi Party Contract
Consensus Docs 300 – Tri-Party Collaborative Agreement
Level 4 – IPD: Single Purpose entity
(SPE)
AIA C195-2008 Standard form Single Purpose Entity
Agreement for Integrated Project Delivery
35. IPD Project Examples
Case Study Projects
IPD Characteristics
AutodeskAEC
SolutionsDivision
Headquarters
SutterFairfieldMOB
CardinalGlennon
Children’s
St.ClareHealth
Center
EncircleHealth
WalterCronkite
School
Early Involvement of
Participants
Yes Yes Yes Yes Yes Yes
Shared Risk and
Reward
Yes No Yes No Yes No
Multi-party Contract Yes Yes Yes Yes Yes No
Collaborative Decision
Making
Yes Yes Yes Yes Yes Yes
Liability Waivers Yes No No No No No
Jointly Developed
Goals
Yes Yes No Yes Yes Yes
Walter Cronkite School of Journalism
Cardinal Glennon Children’s Hospital Expansion
37. United Kingdom – Industry Reform
Key Industry Publications
1994
Latham Report
(ex-Conservative MP)
1998
Egan Report
(ex-CEO Jaguar)
Collaborative
Contracting
LEAN Principles
2011
UK Cabinet
Office
Whole-of-Govt
Reform
2001
National Audit
Office
Improved
Performance
Construction
Industry Board
(CIB)
Construction
Task Force
Key appointments
Strategic
Forum for
Construction
Chief
Construction
Advisor
2012-2015
Peter Hansford
(ex-Nichols)
2007
UK House of
Commons
Whole-of-Govt
Reform
Chief
Construction
Advisor
2009-2012
Paul Morrell
(ex-AECOM)
Constructing the
Team
Rethinking
Construction
Modernising
Construction
Construction
Matters
Government
Construction
Strategy
38. United Kingdom – Collaborative Contracting
Collaborative Contracts
− NEC3 Family of Contracts
− JCT Constructing
Excellence Contract
British Standard
BS11000
Collaborative Business
Relationships
HM Treasury
Alliancing Best
Practice in
Infrastructure Delivery
39. United Kingdom – Building Information Modelling
2012
HM Government
Building Information
Modelling
2.32 Government will require fully collaborative 3D BIM
(with all project and asset information, documentation and
data being electronic) as a minimum by 2016. A staged
plan will be published with mandated milestones showing
measurable progress at the end of each year.
42. Functionality is well
defined
CCC
Project objectives
are well defined
Project delivery
objectives are
defined
Project budget is
fixed
Construction start
date is fixed
Construction
completion date is
known
Scope is well defined Scope is simple
Time is available to
properly document RCC
Define functionality
Define project
objectives
Define project
delivery objectives
Fix project budget
Define construction
start date
Define construction
completion date
Is it possible to re-
define the scope
Risks are
manageable in RCC
Risk can be re-
distributed away from
the project
Stakeholder
management is
simple
Project brief can be
fully documented to
include stakeholder
issues
Can time be found to
document RCC
Project brief can be
fully documented
Initial brief can be
documented
Impact on
stakeholders is low
Alternative project
outturn costs can be
assessed
Re-asses all
previous decisions
No
Yes
Yes
No
No
No
Yes
No
Yes
CCCYes
No
Yes D&CYes
No
No
No
Yes
Yes
No
Yes
No
D&C is clearly the
best VfM
Yes D&CYes
Political / stakeholder
issues are simple
No
D&CYes
Client demands
certainty of final cost
outcome
Client demands
visible price
competition
Yes dECIYes
ECI
No
Client demands
certainty of a
proposal capable of
being accepted
dTOC
No
Yes
sTOC
No
sTOCYes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
No
MANDATORY REQUIREMENTS
No
PROJECT SPECIFIC OPTIONS
NOTES
Typical
Construction
Contract
Selection
Flowchart
Yes
Yes
No
Mandatory
Requirements
Defined
Mandatory
Requirements
Defined
Yes
CCC
D&C
dECI
ECI
dTOC
sTOC
WRONG
WAY
GO BACK
WRONG
WAY
GO BACK
Conventional Construction Contracts are
the ‘default’ delivery method.
Design and Construct Contracts require
careful documentation and high level
administration skills for successful
outcomes.
Early Contractor Involvement Contracts
are useful when constructors input to a
design is necessary to gain an optimum
outcome.
Collaborative Contracts are an ‘option of
last resort’ for complicated, high profile,
high impact projects.
Mandatory requirements define the project and
provide the data that each of the decisions are
made on.
Mandatory requirements must be defined to a
sufficient level of detail to ensure objective
decision making process.
Risk Assessment Categories
Project
Technical
Cost & Time
Political / Stakeholder
Community
Market
Risk assessment needs to consider the process to
get to the contract stage.
Consider the risks of the design phase in detail,
and separate to the risks in construction phase.
Key risks in this phase include:
Design resource availability and capability
Project timing: particularly construction start
Constructability input required
Requirement for Owner buy in design
There are 3 treatment strategies that enable this
decision:
Avoidance
Transfer
Acceptance
These strategies can be achieved through actions
such as:
Insurance
Early Works
Packaging
The mandatory requirements should be checked/
updated following implementation of such
strategies.
Outturn Cost = Constructors Cost and Owner Cost
Constructors Cost
Construction
Design
Transferred risk
Opportunity
Owner Cost
Project management
Planning
Contract admin
Retained risk
Opportunity
The individual components of the outturn cost are
assessed for changes under the compared
contract types:
Construction cost may vary from level of
competition
Seeking innovation may increase design
costs
Variations may vary under different contracts
The ability to manage risk may vary under
different contracts
The ability to innovate may vary under
different contracts
The commercial framework for dealing with
underruns and overruns may vary under
different contracts
If an assessment of all previous decisions does not
provide a path the project must be re-defined.
If the Initial Brief can not be adequately documented
the project must be re-defined.
Risk assessment is
well defined
Yes
Define risks
Yes
No
A
C
D
E
F
G
A
B
Indicator of available delivery systems.
A
B
C
D
E
F
G
43. Procurement Selection – categorised by risk assessment
− Simple – low risk
− Complex – medium to high risk
− Strategic – risk + complexity high to extreme
Risks: legal, commercial, financial, political, program
management (schedule), technical, logistics
47. Productivity Commission - Inquiry Report
Public Infrastructure
Recommendation 12.5
For complex infrastructure projects,
government clients should:
− provide concept designs using
Building Information Modelling
(BIM) to help lower bid costs, and
− require tender designs to be
submitted using BIM to reduce
overall costs.
48. Australian Progress
Australian Constructor Industry Forum (ACIF) and
Australasian Procurement & Construction Council (APCC)
The construction industry in Australia, the
US and the UK, is changing in response
to four key drivers of change:
1. Clients seeking greater value from
their investment in capital works -
wanting better value for money
outcomes;
2. Recognition that there is considerable
waste and wasted effort embedded
in the way the industry has done
things for years;
3. Technological change, in particular
the use of BIM in the broadest
possible way and across all stages of
the project; and
4. Changes in the insurance industry
enabling better integrated delivery
models.
51. Australian Challenges
- Procurement Process
(In a buyers market)
- PPP’s Preference –
Conservative Delivery
Models
- IP Exit from Government
Agencies
- Willingness to learn from
UK/USA
- FIDIC Asian Influence
- Lack of government
leadership in industry
reform